Secure Tomorrow’s Car Buyers Today

Secure Tomorrow’s Car Buyers Today

There’s nothing quite like the freedom of owning your own car. Having the ability to get from point A to point B without having to rely on anyone or public transportation creates feelings of both independence and pride. People are passionate about car ownership—whether new or used—and findings from Nielsen show how this passion will drive auto sales across the globe.

Affordability and need are central to the automotive purchase decision-making process, but changing population trends, rising wealth accumulation and growing aspirations are also helping to fuel new demand. This expansion represents good news for automakers, but understanding the motivational factors driving this demand is critical to reaching the right consumers for your products.

Purchase Intent

According to Nielsen’s global online survey of automotive purchase intent, 65 percent of respondents across 60 countries plan to buy a new or used car in the next two years.

New car purchase intent is strongest in Asia-Pacific, where 65 percent of respondents say they will buy new, compared with only 7 percent that plan to buy used. In the region, this new car demand will be driven by consumers in India (77%), China (76%), Thailand (68%) and Indonesia (63%), where the expectation to buy is highest. While new car purchase intent also dominates in Latin America, Middle East/Africa and North America, the ratios of new to used car purchase intent in these regions are smaller. Meanwhile, in Europe, more respondents plan to buy a used (28%) rather than a new car (22%) in the next two years.

Related Insights

At a macro level, economic conditions around the globe ended 2018 on an upbeat note. Global consumer confidence was at its highest level in 14 years, but 39 of the 64 countries included in the global Consumer Confidence Index reported declines in consumer sentiment.

Around the world, consumers are looking for a taste of the good life. And it’s not just those who are wealthy. Sales of products in the “premium” tier are growing at a rapid pace. In fact, the growth of the premium sector in many markets is outpacing total growth for many fast-moving consumer...

In contrast to the ongoing market challenges facing global fast-moving consumer goods (FMCG) manufacturers and retailers, consumers are in better spirits than they were at the end of 2016. In fact, global consumer confidence has risen three index points since the close of last year.